About relationship between required return and stock price

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Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.25 next year. The growth rate in the dividends for all 3 companies is 4%. The required return for each company’s stock is 8%, 11%, & 14% respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and the stock price?

Reference no: EM13972555

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